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Tennessee Conservative News [By Olivia Lupia] –
In response to a Presidential Memorandum to the Tennessee Valley Authority (TVA) instructing the Board of Directors to adhere to fiscal responsibility in its compensation practices, the agency will be significantly reducing the pay for its CEO and eliminating more than a dozen executive positions.
President Trump sent the memorandum to the TVA Board on March 11, implementing “reasonable limits on compensation at the TVA”.
The directive notes that the President, who serves as the chief executive officer of the entire Federal Government is paid a salary of $400,000 and the highest paid governor in the U.S. makes around $254,000 annually, yet TVA senior executives have received “compensation in the millions of dollars for their ostensibly public service.”
A confirmation of that statement is evidenced in the compensation package of former TVA CEO Jeff Lyash which totaled more than $10 million in 2024 even after his incentive pay was reduced that year. Lyash was the highest paid federal employee in the United States and announced his retirement eleven days after Trump returned to the White House.
Don Moul, who Lyash supported as his replacement, is expected to make approximately $6 million this year in total compensation, and announced his resignation in April effective July 1, 2026, after serving just over one year in the role as President Trump continued to pressure the agency to enact salary caps.
The letter suggests a maximum annual compensation limit for all TVA employees of $500,000, including the CEO. “Total annual compensation” includes salary or any other pay, bonuses, incentives, and “any other form of current or future financial compensation provided by the TVA to the relevant employee.”
Also in the directive are instructions for the Board to submit a written certification describing any actions it will take to implement salary adjustments within 120 days of receiving the memo.
On May 22, TVA Board Chair Mitch Graves responded with a memo announcing plans to reduce overall compensation in the agency by $153 million by Fiscal Year 2027 and cut CEO pay to less than $1 million. TVA is planning to reduce maximum potential payouts for all incentive plans by up to $87 million in the next fiscal year.
While the public utility is primarily funded by the sale of electricity to its customers, President Trump stated in the memo that, “As a federally owned entity, the TVA is entrusted with stewarding public resources in a manner consistent with principles of fiscal responsibility, accountability, and public service. Excessive compensation at federally owned corporations undermines public confidence and is inconsistent with responsible stewardship of Federal resources.”
About the Author: Olivia Lupia is a political refugee from Colorado who now calls Tennessee home. A proud follower of Christ, she views all political happenings through a Biblical lens and aims to utilize her knowledge and experience to educate and equip others. Olivia is an outspoken conservative who has run for local office, managed campaigns, and been highly involved with state & local GOPs, state legislatures, and other grassroots organizations and movements. Olivia can be reached at olivia@tennesseeconservativenews.com.
2 Responses
GOOD!! Wish it was enough to make a difference in our electric bills.
TVA is not a private company: It’s a federally chartered public utility serving ~10 million people across 7 states, with monopoly-like power generation/transmission. Ratepayers ultimately foot the bill for executive compensation through electricity rates. Paying private-sector CEO levels while enjoying government backing and limited competition is hard to justify.
This is government efficiency in action using presidential pressure on an appointed board to deliver visible results for taxpayers and ratepayers. It’s the kind of commonsense restraint that’s rare in large public bureaucracies. If it leads to leaner operations without compromising reliability, it’s a clear win. TVA should be run like a business on costs, but with public service accountability on pricing and service.
Realistic caveats would be….. Talent retention risk. Running a massive power system (nuclear, hydro, coal/gas, transmission) requires skilled executives. Drastic cuts could make it harder to attract top talent versus private utilities. Some turnover (e.g., CEO retirements) is already occurring. This is not a full $500k hard cap on salary. But salary in the millions was excessive. The Board delivered substantial savings but stopped short of a strict ceiling for everyone, emphasizing performance incentives and competitiveness. This is a pragmatic compromise. Impact on rates and a savings of $153 million sounds large, but TVA’s annual budget/revenue is in the billions. It’s a helpful step, but not a rate revolution. Long-term rate relief depends more on energy policy, fuel costs, and capital projects.